Banks are filling up to the brim with distressed debt due to the economic hardship brought upon us by the pandemic. How can we make the best out of this situation? Join Scott Carson as he breaks down some of the distressing economic numbers that are currently facing the United States banks and debt markets in 2020.  He also shares the best way to capitalize on the over $150 Billion in distressed debt that banks have on their books and how to contact the right person inside the banks to start making money with notes. Scott is going to teach you how to legally steal from banks with these ingenious tips. You might want to grab a pen and paper for this one.

While you are here, you can get 20% off of your lifetime access by signing up at http://NoteProz.com and using the code WCN20%.

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EP NNA 76 – US Debt Market 2020: Distressed Debt And Opportunities For Note Investing

I’m honored to be here.

I’m excited to be here with you.

Vanessa, you want to introduce me. If you don’t know me, Vanessa’s got a little intro there. We’ll dive into some good stuff. I encourage you all to grab a pen and paper though. You want to take some notes because I promise it’ll be entertaining and educational for sure.

Thank you, Scott. Everybody, I would like for you to help me welcome Scott Carson aka the Note Guy. He is a nationally syndicated radio and podcast host of the popular Note Closers Show podcast with millions of listeners each month. He’s been an active real estate investor and entrepreneur since 2002, focused on the niche of distressed mortgage investing. For the past several years, he’s been helping real estate investors and entrepreneurs create wealth through his teachings and strategies. He is a highly sought after speaker and podcast guest with thousands of speaking appearances at events across the country. He’s also been featured in many media outlets including Investor’s Business Daily, The Wall Street Journal, and Inc.com. He spends his free time traveling to new places and making new memories. He calls Austin, Texas his home. Please welcome Scott Carson.

Thank you for having me. I’m honored to be here for you all. I know Dave is out having fun somewhere. Thanks, Dave. Thanks, Kay. I appreciate that out there for you. I would love to know where you are located. I always love feedback. I’m honored to be a part of it but before I get going, I want to know a little about you besides where you’re at. Before I speak, I always give everybody a Myers-Briggs test and people are like, “It’s a test. I didn’t know I was going to be on a test.” It’s already here for you.

You’re going to see four shapes, a circle, triangle, square, or star and I’m going to launch a poll. I want to know what shape calls your eyes. Which shape are you attracted to? Depending on how you answer will depend a little bit on how I comment on this stuff. There’s no wrong answer. It’s a fun thing for you to get rock and rolling. Usually, the square has 0% to 5%. That’s normal. If you’re a square, you need to take something apart and put it all back together again before you take action. That sounds about right. You’re like, “I got to know everything. I got to break it all apart and put it back together.” The engineers on this show. That sounds like you. If you said circle, it’s the next level up. You guys and gals are those that need to know, “Give me some of the high points in the middle and the low. I don’t need to know everything but give me some high middle and low points so I can take action on things.”

The triangle, you are like upper management. “Please give me the high points.” Normally, right on top, 20% to 25% of the room I’m speaking at, “Give me the high points. I can make my decision from there.” That leaves the rest of you as a star, 64%. It’s overwhelming. You learn best by sex, drugs, and alcohol. While we can’t be at a place or location to have a bar or whatever, we’re going to stick to having a little bit of fun. Hopefully, you’ve got an adult beverage next to you to relax, Pop-A-Top, or whatever it might be. I promise you that we’re going to have a good time for you.

Anyway, thank you for being here with me. Vanessa, thank you for the introduction. You’ve said that I’ve been an active investor for many years, focused primarily on the distressed debt, distressed mortgage market, owner financing, selling and buying, and selling distressed debt for over a decade. I’ve been called the love connection of distressed notes and ugly paper by Chuck Woolery out there. I’ve purchased over $1 billion in distressed debt all across the United States on residential commercial properties. I have been featured all across the place. I helped thousands of investors.

Wherever you read blogs, if you follow me on the Note Closers Show, we’re celebrating our show with 600-plus episodes and 30 million followers across the United States, and then also listened to in over 100 countries, including our second big note audience outside the United States is in Canada. Thank you for being here. I want to ask you, why are you all here on a Wednesday evening when you could be doing something else? I know the answer to that. We all have a different reason why we’re here. It’s to be sitting somewhere later on in life drinking piña coladas or margaritas on the beach.

That looks a little bit like Dave if you think about that picture there. That’s why I thought I’d use that. It’s to fund your retirement accounts. There was a disturbing statistic that came out that stated that most people at retirement have less than $80,000 in retirement money to survive on. We know that’s not going to work no matter what the exchange rate or where you’re located at. If you want to spend more time with your spouse and retire, that’s a big and a great thing to do. It’s to put your kids through college. That’s a bit of a crazy time out there as well across the country.

You want to say, “Mom, Dad, it’s time for you to take it easy for help and support me.” We know that’s a big thing. You want to travel more. Once they open the borders up, you start traveling to places. You want to go someplace for a true vacation because God knows we’re all tired of staycations. You want to upgrade your digs, upgrade your crib, and buy new assets. It’s great to have goals. It’s great to have dreams but we know one thing is true. It takes money to make all this stuff happen and most people don’t have enough of their own money to make things happen.

What I love is what Dave teaches. I had Dave on my show talking about raising capital. I love what he talks about it. There is much private capital out there no matter where you’re at. It’s sitting on the sidelines waiting for you to find some deals and waiting for you to give them a phone call to make some things happen. We’ve got some great stuff. I’ve never been a better opportunity I say than what’s going on in the markets, even though it’s a little bit of crazy time out there.

Scary Numbers

What are we going to cover here? I’m going to discuss some of the ways to find distressed debt. We’ll dive to define what an NPN is from the different banks that are having stuff on their books because it’s clogging up their books. There’s a lot of opportunities in the US market out there. We’ll talk about how to fund these deals with OPM, which I’m sure many of you are familiar with. We’ll talk about how to flip notes and how to make money in distressed debt because that’s why we’re all here. How to make some money and what’s going on in the market.

We’ll also talk about how we like to focus on rehabbing the borrower versus taking the property back. We make more money in the debt markets by working with those that are on the hook for the deal. We’ll also talk about how to build a blueprint for success, and then we’ll talk about how we create win-win-win scenarios for yourself, the banks, and the homeowners or the borrowers on this distressed debt side. I always like to ask what does your biz look like? When I’m talking in front of real estate investors, it’s always the big thing.

Most people out there are looking for a distressed asset. They’re looking for something like this. It’s got a lien on to it and like, “$5,000 and I can turn it into that. All I need is to buy a greater pair.” It’s what every wholesaler ever said. If you look at that picture, you can hear the wind whistling through the windows. Can’t you? It’s got lien space on it of some sort, but we’re looking the same. Take something ugly, take something distressed no matter where you’re at, and turn into something free. Rub on it and turn a piece of coal into a diamond.

I want you to think a little bit different because a lot of investors get in the habit of thinking onesies, twosies, one deal here, fix, and flip. I want you to think like a banker, and I know banking laws are different north of the border than they are in the United States. I want you to think big picture because if you want to get ahead, you can’t think small anymore. If you want to accomplish big things, you’ve got to take your game to a whole different level. When I think of what my business is like, this is what it looks like. I’m not thinking of that single-family, 3-bedroom, 2.5 property in San Antonio, Texas, or that 4-bedroom, 3-bath up in Duluth, Minnesota.

I’m looking nationwide for the best deals. I’m looking for stuff that I can take down the bigger picture and take my game to a whole other level because that’s how you get ahead. Several years ago was an amazing opportunity. A lot of people made a lot of money and a lot of wealth that’s transferred. We’re going to see similar things in the United States in the next couple of years. The question I have for you is if money wasn’t an issue, how big a piece of that pie would you want? The answer to that is, “As big as I can take.”

I will tell you this. There’s never been a better opportunity with what we’re seeing and what we’re experiencing. Everybody’s freaking out. “I got to wear a mask somewhere.” I’ll wear a mask all the way to the bank because I will show you how to legally steal from banks. I have bought a variety of debt on all sorts of different asset classes. I bought debt on single and multifamily homes, apartments anywhere from one single property all the way up to a 300-unit apartment complex. I bought on apartment complexes, self-storage facilities direct from banks, and medical offices, and then restructured the debt.

I bought long-term care debt facilities, mobile home parks, and motels and hotels. We’ve bought debt on stuff all across the country, anywhere from a smaller exterior door to a large 300 plus unit hotel as well. I’m working on a deal for a 1,300-door hotel in New York City that the bank is looking to sell the note for less than $0.20 on the dollar. I’m working with a buyer potentially for that deal. I bought a note on a truck. It looks exactly like that one I bought years ago. I borrowed $12,000 on it and I paid $3,500 for the note. I drove it around for three years and got a $3,500 trading value on it when I tried it on my new vehicle.

What I’m trying to get at everybody is that one thing you have to realize for every one of us on this show is we’re already in the debt space and the note space. Unfortunately, most of us are on the wrong end of it. If you’re paying out on your mortgage, car loans, credit cards, medical, or whatever you might have as debt, you’re on the wrong side of the payment streams. My job is to show you how to get on the right side of that stuff. You’ve probably heard, “It looks like it’s going to be 2000 all over again.” I’m going to talk about some things that have led up to the crisis of what’s going on. Not something in China. I want to talk about what’s going on with distressed debt space.

For the last few years, we’ve had what’s called the United States, non-prime loans. They like to say back in 2008, it was a subprime mortgage meltdown. That was a big chunk of it. Over the last few years, subprime showed up back again as non-prime. We had 100% financing taking place with FICOs as little as 500. That’s not a good thing. If somebody got a 500 FICO score, they shouldn’t be a homeowner. They should be renting. We’ve seen lending programs come from institutions and banks that were doing one day at foreclosure, bankruptcies, short sales, and want to finance.

We are seeing record defaults in the auto loan space, the student loans, and the credit card debt space here in the United States. It sounds like a great deck of cards, doesn’t it? I always like to ask people if you knew ten years ago what you know now, what type of action would you take? The number one answer is, “I would go buy more stuff ten years ago because real estate was a whole lot cheaper.” We have unfortunately built these decks of cards that were 1 or 2 things away from it crashing in. We’ve seen that happen with the COVID pandemic. All sorts of defaults are not only happening. They’ve been happening and they’ve got a whole lot worse with things.

 

The question I want to ask you is if you could take action ten years ago what you know now, what will you do with that knowledge for the next ten years to make something better happen for you, your family, and your goals that you want to happen? Hopefully, you take action. We will talk about some of the disturbing numbers out there. When I look at these disturbing numbers, it scares a lot of people. Yes, it scares me sometimes. When you think about some of the big financial things, when there’s blood in the water, you want to run. When people are running in one direction, you want to run in the opposite direction.

If you look at it, here are some of the things that were scary and the numbers that we track. In the United States, 1 out of 10 borrowers was already a month behind in their mortgage payments. No match was needed for that. We were already 30 days behind, 10% of the country. That’s not good. As of now, we look back at it and we’ve had over 50 million people file for unemployment benefits here in the United States alone not received yet because that’s a cluster. Some people are waiting a month without any type of response yet. 52% of small businesses are expected to fail here before everything rolls out. That number is going to get worse the longer that drags on in different parts of the country.

As of June 2020, we don’t have the July numbers out yet, 1 out of 12 borrowers was at least 90 days behind on their mortgage in serious default. That equates to 7.76% of the borrowers out there, 4.1 million homeowners in default. The thing to keep in mind is when you look back in history, in 2008, it took us eighteen months. When everything happened in the last meltdown for us in the United States, it took us eighteen months to get to 1.6 million defaults. We’re 2.5 to 3 times faster. They’re not talking about this. We are in for a big hurt here in the United States when it comes to stuff.

There are 4.7 million borrowers on forbearance agreements and the Mortgage Bankers Association says there should be another 4 million that should have reached out to the bank that hasn’t reached out for a forbearance agreement. We know that, especially in the United States, with government-backed loans that we have here, foreclosure and eviction more towards is already ending the executive order that our president put in place that expires here on government loans on August 31. There are a lot of people that are scared to death. Not only borrowers but tenants are also looking at being evicted.

The disturbing thing is if you look at some of the trends twelve years ago or so, it wasn’t a lot of the banks that financed the distressed stuff. It was more of the big guys, the CMBS, commercial mortgage-backed securities on Wall Street that financed 64% or 65% of the stuff. It’s been the banks here have gobbled up this stuff. Based on the preliminary numbers, they say that they’re involved in about 53% of the commercial distressed debt. Residential side, they’re all for that. It’s almost like the perfect storm of distressed debt if you’re a debt investor. If you’re a bank, the numbers came out that the banks are expecting to lose $48 billion on commercial real estate loans alone.

The big four, the Bank of America, Chase, Citi, and Wells Fargo expect they have over $100 billion and $50 billion in distressed loans on their books. Not commercial, but distressed loans all across the board. Nobody’s talking about this here in the United States. It’s all about, “Do you have to wear a mask? Who’s going to run and win the election?” God knows we’ve got different things going on. I won’t get into that but I will tell you this. If you look at these numbers, this is something telling you, “The United States is about to be on sale.” If you’ve ever heard of Kmart, it’s a blue light special across the board for everybody here if you know where to look, who to contact, and who to talk to out there.

As we talked about this that came out here, lenders are bracing for us to see close to $15 million mortgages in default across the country. The government has been using forbearance agreements to kick the can down the road for six months. They’re talking about doing it for another six months. The government can’t keep printing money and giving people money every month if they tried to do it. At some point, the piper’s got to get paid and the banks are going to say, “Thank you. We’ve tried to help you out but we’ve got to take the property back. We’ve got to foreclose. We’ve got to do something.” That’s what we’re going to see.

Note Opportunities

A little bit of the information on basic investing in notes. I’m not going to talk about going and buying a rental property. I’m not going to talk about buying the house and fixing and flipping it. If I have to buy a note, buy a property and then fix and flip, then I’ve done something wrong. It’s the thing I hate the most. If you’re a landlord, I’m not going to get into how to buy more rental properties. I’m going to talk about how you buy the debt, become the bank, and then have all these different options available to you to make some things happen. We’re all in the note game, and I will tell you this. Banks will sell you notes if you know who to talk to.

Before Vanessa gave that nice intro, I was a banker with JPMorgan Chase years ago out of college and was a vice president with the bank. People come in, “We want to buy your notes and buy your debt.” I’m like, “I have no idea what the hell you’re talking about.” There are plenty of banks out there that have this stuff on their books that they’re looking to get it off their books. If you know who to talk to and know what to say and what not to say, I’ll definitely sell you the stuff. The beautiful thing when you buy the notes is you become the bank. You have all the same rights that the bank has when you buy the note and become the lender. No, you don’t have to have a ton of licenses.

Some states require you to have a mortgage broker’s license but for the mass majority, you can do this without having to go into extra license out there. The pricing ranges. We’re all interested in discounts. One of the big three things that I love about the note business is the fact that we control real estate at substantial discounts well below what most investors are seeing. I talked about the hotel in New York at less than $0.20 on the dollar. We’re seeing all sorts of assets ranging in a discount from anywhere from 25% to 75% off depending on the market, asset class, and where it’s located. The United States is on sale.

What I love about the notes business is I have multiple exit strategies. If I can get the person reperforming great, do a loan mod, ask to take over the payments, or do a short sale, that will talk a little about the different exit strategies in making money. I love the fact that I make more money and get a higher return on not only my investment and my time by keeping people in their homes. We make far superior returns than having to foreclose, take the house back, turn the rental, and try to sell it. We make higher returns by keeping people in their houses.

That’s one number that we as investors can identify. It’s like pi. Pi is 3.14. Return on investment doesn’t lie. Return on time doesn’t lie. You don’t have to be local to do this. I’m in Austin, Texas and I haven’t bought my stuff in the last couple of years. It has been a competitive market. I bought all across the country leveraging vendors and people all across the country to be my eyes, and then evaluate the deals on spreadsheets, and then rock and roll. There are vendors and attorneys to help you out with and stuff there for you.

What we’re seeing in the market is a variety of commercial and residential deals. Banks roughly have 75% of their distress portfolios on the commercial side and about 25% are on the residential side. That number is probably going to increase a little bit on the residential side but it is a tidal wave of deals that is on the verge and already starting to trickle in. What’s funny is when you start seeing magazines and newspapers using comics from years ago to discuss what’s going on now. This is an example. Something that popped up talking about Wall Street. I’m going to be hit hard out there.

Let’s first dive into how we find these deals. Where do you find these deals? You don’t go down to your local bank and say, “I want to buy a mortgage.” No, it doesn’t happen that way. There are internal departments at banks, lending institutions that handle their distressed note sales, which you get better discounts at versus performing stuff. They go by specific names and we’ll get to the names here. There are banks and hedge funds that sell notes. There are servicing companies that handle the payment receiving that sell notes. On behalf of the banks, there are auction websites that handle note sales. There are mortgage bankers that have stuff on their books that they’re looking to get rid of.

There’s a lot of stuff out there. There are private sellers like myself and others that have notes that we’ve purchased in our portfolio that we’re looking to move. I have two performing notes. The borrower has come to the table and is starting to pay again. I’m going to sell those notes off at a higher price than when I bought a note from another investor looking for performing notes. There are a lot of different ways to make some things happen and a lot of ways to find deals. There are plenty of lenders and institutions out there that have the stuff on their books.

Who am I looking for? You’re not going to go to your local bank. You’re not going to call the customer service of the bank. You’re not going to call the 1-800 number and say, “I want to buy your notes.” They’re not going to know what the hell you’re talking about. Each bank, each one institution has a little bit of a different name, but it usually falls into 1 of 3 or 4 categories. The first one is a special asset manager. It’s usually the title of the first one. If you jump on LinkedIn and type in special asset managers, you’ll find over 233,000 people that have this job title out there.

One of the ways that we reach out to banks is by going on LinkedIn and typing in special asset managers and then contacting those people at specific institutions. “I’m a distressed investor. I’m looking for nonperforming notes. What do you have in your books that you’re looking to get rid of this quarter?” Another title that a lot of these guys or gals go by is a secondary marketing manager. You type in the search on LinkedIn, there are over 1 million-plus connections that say they have some secondary marketing experience in their title or in the past.

I’m calling the bank. I’m looking for a special asset department or the secondary marketing department. I don’t say marketing because they’ll send you to a whole different department as well. Chief credit officers is another title. Oftentimes, you’ll find it in banks. You’ll find this with a lot of credit unions but I spend most of my time contacting banks directly. You see 124,000 chief credit risk officers out there or you can look at whole loan sales departments. This is the list that I like to target the most. It’s the smaller list of 39,000 potential connections on LinkedIn but it’s the people handling the loan sales departments in the bank. It’s obvious, whole loan sales.

The beautiful thing about these guys and gals is if you’re reaching out to this LinkedIn, you don’t have to have an expensive LinkedIn account. We don’t drop postcards and we don’t drop yellow letters. We don’t do bandit signs to find real estate deals. It’s the 21st century and Scotty is here to beam you up. I’m giving Vanessa all she’s got to help people find deals out there. That is as easy as going to LinkedIn and typing in special asset managers and secondary marketing managers. You’ll see the person’s name, bank name, and state they’re in. We contact bankers that way to get them sent to us.

Quicken Loans out of Cleveland. I’ve been direct to them for about a few years because I connect with them on LinkedIn. They send me a list of their loans every quarter that I can cherry-pick from. There’s a whole variety of banks out there selling stuff like Capital One What’s In Your Wallet?, Wells Fargo, Bayview, and all sorts of lenders out there. I’ve been direct to Capital One for over twelve years, and I’ll tell you a little story about them. I came across that they were selling a note here in Austin, Texas, in a strip mall. I was like, “I know they sold the note. I can see the assignment of the mortgage that was filed with the county and the name transfer.”

I get on the phone and I start dialing for dollars. I’m getting transferred. I can’t tell you how many times I was transferred to Pakistan. “Hello, my name is Steve.” No, it’s not. Tell me the right person. On the seventeenth phone call, I got the right person, Amy Grasso out of New York. She sends me a nondisclosure to sign and sends me back over a 33-page PDF of all their small balance commercial loans. The font was small. It was a 0.6 font. I only almost needed a magnifying glass to read the thing but hundreds of deals across the country that I could pick up and she’s like, “Buy something.”

That was a $1 million relationship for me. The first deal I bought was an eight-unit apartment complex in San Diego. The borrower owed $550,000 on the deal. The eight-unit was worth $700,000. I bought the note for $375,000 and I flipped the note 24 hours later if they’re going to contract for $35,000 profit. I bought commercial loans from Wells Fargo, a 75-unit apartment note in Laredo. We got it reperforming and cashed out of it. Also, BB&T Bank. I bought stuff from all sorts of institutions. This is a drop in the bank out there.

 

Banks have all this junk on their books. When it’s nonperforming, it’s junk to them. I’ll give you a bit of an idea of some of the things that we’ve seen. There’s this is a 3-bedroom, 2-bath condo in Miami Gardens, Florida. The borrower owed $175,000 on it. It was worth $50,000 because of the depreciation of the market. We paid $17,000 for the note on it. The guy had not paid in over two years. It took us about a year to foreclose. In that timeframe, the market value re-appreciated and we made a nice chunk in there. It’s rented for $1,500 a month. If I wanted to take it back, it would be a great rental for what I paid for it as well at $17,000.

This is in Miami as well. It’s done in Coral Gables, Florida. It’s the historic David Williams Hotel down there. I bought two condos there. The borrower owed $100,000 online and another one owed $130,000 on another one. I picked them up for $20,000 each. It took me about eighteen months to foreclose because the borrower fought me on that but the values were $50,000 to $60,000. By the time we finished foreclosure, the values had come back worth over $100,000 each. We made some great money on that.

I like to tell this story. This is a property in South Carolina, not too far from North Carolina. It was an investment home. The borrower owed $110,000 on it. It was worth about $80,000. I paid $24,000 for the 3-bedroom, 1-bath cinder block home. Not on the water but near the water. I’d seen by doing my due diligence at the bank provided to me, their call notes, and all this other stuff on the servicing side that the borrower was trying to be friendly with the bank. Even though he couldn’t pay the mortgage and pay the mortgage in eight months, so we bought the note.

We make a phone call and get the borrower on the second ring. I can tell you that at the table, dinner’s being cooked, your kids in the background, TV on, and water running, he goes, “Hello.” I’m like, “Hello. Is this such and such?” He goes, “Yes, it is.” I go, “My name is Scott Carson. I’m with Inverse Investment Fund. I’m calling because I’m a new lender in your house in South Carolina.” He goes, “Crap.” I go, “Relax. It’s okay. Tell me what happened.” He goes, “We bought this house. It was going to be an investment property we’re going to go to on the weekends because it’s near the water. We’re excited about it, then I got laid off. My wife got laid off and things went crap.”

I was like, “What do you want to do? Do you want to keep the house or do you want to walk away from it?” He goes, “I’d like to walk away.” I was like, “Let’s talk about that.” You can hear his wife like, “Who are you talking to?” He’s like, “I’m talking to the new bank on the house in South Carolina.” She’s like, “Your big, bad real estate investor deal. You screwed the pooch on that one.” She said some other things. He’s like, “The banker tells me he’s one less walk.” She’s like, “Whatever. Hang up. Fraud. He’s a liar.”

I was like, “She’s giving it to you. Here’s what I want you to do. I want you not to hang up with me but tomorrow, I want you to call my attorney here in South Carolina. Here’s his information. You’ll have the documents ready for it. Either this week that you can show up, and you probably need to bring her along to sign off. I’m going to forgive you that $110,000 in debt.” He’s like, “What?” I’m like, “You said you want to walk? I’m going to forgive you for it.” I bought a note, ridiculously cheap. It’s worth $80,000. I didn’t tell him this. What I was into it for, to take it back, I could turn around and sell that asset at $75,000 to $80,000 and triple the money I paid on that.

If he wanted to keep the property, I would have modified the loan for him. Let him keep it and start all over again but he didn’t want to. He wanted to walk away from that situation. I said, “Here’s what I want you to do.” I said, “You’re going to go talk to my attorney. My attorney is going to have a check for you because you need to check. I’m going to give you $1,000 for you to give it to your wife.” It’s a shut-up check. Sure enough, a week later, the guy shows up at my attorney’s office and signs the paperwork. He doesn’t believe it. There’s a check for my attorney handed to him. I get a letter in the mail from him.

For many people, finances are a stressful thing in relationships. We can agree to that. He goes, “I want to say thank you for helping us out of a bad situation. I and my wife reconciled after this was done.” I was like, “It’s a performing marriage again there for him.” Banks have all this stuff clogging up their books. What we think looks great, they think looks like crap because it’s nonperforming. For every month that a loan goes nonperforming, the value of that paper, the value of that mortgage decreases 5% or 10% to the point the paper is not worth what’s written on.

When you have markets that are being hit hard, that value drops on residential and commercial properties. I’ll give an example. This is a Hyatt Place hotel here in Austin, Texas. It’s a great market. Roughly, the pre-value at the beginning here was $15 million. The bank is looking to sell this at $4 million, over $0.25 on the dollar. It’s open and it’s taking stuff. It’s that people are hit hard. It’s an asset class that has been hit. I got buddies that are taking these hotels and converting them to apartment complexes. They turn them into 2-bedroom, 2-bath apartments and a variety of things.

That’s where it is helpful for us as investors. The banks weren’t meant to put all this stuff together. The banks can’t handle defaults for the most part. They don’t have the creativity or the flexibility that we do as investors. What I love about the note business is I can find amazing deals from banks. I can take an asset over or take the bank over and work with a borrower and help them walk away if we need to, and then re-pivot. They ask you to keep it. Whereas a hotel, if I buy it cheap enough, that makes sense. If not, then we can re-pivot and do it.

How do you fund these deals besides once you get something from the bank to look at? You’ve got to have cash. You can’t go out and get a loan to buy on a nonperforming note. It doesn’t work that way. No bank will give you a loan on a loan. On commercial assets, sometimes the bank will carry the paper on a $1 million-plus loan. A lot of times, I’ll move it from the nonperforming side to the reperforming side if you’re taking over the asset commercial but for the most part, you’re not going to find a hard money lender. You’re not going to find a bank to give you so you have to fund this with OPM, Other People’s Money, or retirement accounts.

Self-directed IRA is something we have here in the United States. There’s roughly $9 trillion in the US market sitting around waiting to be invested in something. The beautiful thing is a lot of times people use their savings accounts or they’ll transfer money to an LLC to fund it or whatever they might be. 401(k)s as retirement accounts, people can cash that out to fund deals on cash. There’s a variety of ways to fund deals. We like to tap into other people’s money. We work with a lot of investors across the country to fund deals, whether it’s a one-off deal or fund a portfolio. We work with real estate clubs, meetup groups across the country, talking about the different deals flow we have.

We’ll reach out to self-directed IRA investors. We can jump on the different county records here in the United States and find people that have bought a property with their IRA account or have limited money on their IRA account. That is the only bit of direct mail marketing we do by sending them a letter or reaching out to them to say, “I see that you funded a deal. Are you looking for more deals to fund? We would love to talk with you about partnering with us in a variety of things.” We use the county appraisal to find self-directed IRA investors or we’ll jump on what’s called the county clerk or the recorder’s office here in the United States. That’s where the documents are filed here locally on a transfer of ownership or a deed transfer or anything like that as well.

The Flip Side

It’s all at the touch of our fingertips to find these types of investors out there. Let’s dive into the big thing, the flip side. How are we making some money on this? There’s a variety of exit strategies when it comes to buying distressed debt. Ten different ones on the residential side. I’ll give you a flip thing. If you buy a nonperforming note right, you can wholesale the note, wholesale a piece of property, reinstate the loan, modify the loan if you want to, allow the borrower to change the interest rate, or how much is owed or do a variety of things like changing the payment. You can let somebody come in and assume the loan. Take over a loan assumption. You can do that being the banks.

Sometimes, you get a cash payoff and you’re willing to settle for a discount. I got a deal in Sandusky, Ohio, and the borrower reached out to us. It was about $45,000 and the house is a small 3-bedroom, 1-bath. It’s an old house built before 1950. It’s worth me about $40,000 to $45,000. He offered to settle at $30,000 with me. I’m like, “I paid less than $6,000 for that note. I’ll go ahead and accept $30,000 and make it a win-win.” It’s a good return for me versus me having to foreclose, then try to turn around and sell it or have to upkeep it. I don’t worry about that. I’m going to think of the $24,000 in profit and move on.

We have short sales happen quite a bit here in the United States. Are you familiar with what a short sale is? A short sale is where the bank takes a loss with a borrower selling the property. I’ll give an example. Say, the borrower owes $120,000 but the house is only worth $100,000. They list the property for sale on the MLS. He comes in and offers $90,000 for the property. Me being the bank, I can agree to take a short and approve that $90,000 offer. I’ll let the borrower resell the property, let the buyer buy, and then let the buyer get off. You could say Scott-free.

I like short sales because we’re often buying notes well below what the value is and we can make a lot of money, and we approve short sales relatively quickly. We’re not in a 6 to 9-month process like it normally takes here in the United States. You can get a deed in lieu of consent judgment as I call it Cash for Keys. “We’ll give you $500 or $5,000 to walk and let you move on your merry way.” We’ve paid as little as $500 all the way up to $10,000 for Cash for Keys depending on the scenario. Sometimes, we’re giving the borrowers a month or two of rent or helping them with moving costs to move on.

When you buy a note and if you get it reperforming or modified and have been paying for a while, it’s now considered a reperforming note that you can sell off at a higher amount. If we buy a nonperforming note, let’s say at 35% and the borrower pays on time for 6 to 12 months, we can often sell that note for 80% to 85% after that period of time. We can sell it back to Wall Street and other investors that are looking for cashflow as well. Nine, our most hated strategy is to foreclose. We still end up doing this about half the time.

Foreclosure can range from 21 days here in Texas to 2 years plus or 3 years plus if you’re in New York. I don’t buy New York. I don’t buy in New Jersey. You’ll wait too long to foreclose there. I like states that are at nine months or sooner to foreclose but foreclosure still happens quite a bit out there. Ten, sell the note. If you bind a note and you’re working with a borrower of some sort and they’re a pain in the ass, but you bought it right enough, you can often sell it to a local investor who can take over that PITA, pain in the ass and still make a profit if you buy right. Those are the ten major strategies.

If a borrower files bankruptcy on a note deal, we love that because now we have an attorney to talk to that we can work out of either a modification if it’s a chapter 13 or liquidation and get the property back of chapter 7. I do not like vacant assets. When I’m looking at notes that I get from the banks, occupied is always more desirable for us versus vacant. If an asset is vacant, it probably has had some vandalism or it needs some work either plumbing, electrical, roof, or foundation. If it’s vacant, oftentimes, the copper goblins have shown up or the air conditioner has gone off on vacation. When it’s 110 degrees, “Screw this. I’m out of here.”

If it’s occupied, you’re going to have to foreclose and they will work with it. If somebody is living in the house and usually takes good care of, you can tell a lot about the interior of a property if they got a flag out on the holidays, the lawn is mowed, and they got kid toys out there. Also, the fact is that we can’t see inside the property. You can’t go and look at the inside of an occupied property. You get the servicing notes. You can see the previous servicer has been reaching out and calling the borrower if that borrower has been friendly or told them to stance. We can tell a lot about that.

We also use the 21st-century technology called Facebook to socially stalk our borrowers and we found information that’s been interesting on our borrowers. That one lady in Orlando was saying, “Do I pay my mortgage or do we go to Disneyland?” I’m like, “You’re not going to pay your mortgage. We’re going to foreclose on it.” We found another guy who was going through a bit of a transition. He wanted to use his mortgage payments to pay for his breast implants. You see a lot of information on people out there. It’s surprising.

 

With occupied assets, you automatically have double the amount of exit strategies and about half the time, we’re good at getting the borrower to modify or come back to the table. We like you to say, “We like to rehab the borrower. I don’t want to rehab the property.” Mr. and Mrs. Borrower, I don’t care what country western song you went through or your 4th grandmother died for the 5th time, been laid off from work or whatever it might be. Can you start paying your mortgage? If you can start paying your mortgage, great. If you can’t start paying the existing amount, what can you pay?

I have to look at the number. Does it make sense? We go from there. Here’s the thing, “You no pay, you no stay.” There are three ways of making money in the note business and I love these three payment streams. If we can get them to reinstate on the front-end, great. We get monthly payments. We always require the borrower though if they’ve been not paying for six months or longer to bring some skin in the game. If I go ahead and modify them off the bat without any skin in the game, they’re unlikely to default on their mortgage again. We like to ask for extra skin. We usually like to do some lump sums or add extra to their monthly payment.

Usually, we try to get 3 to 4 months of payments on the front-end. If they haven’t been paying for six months, they’re going to have something they can pay for. Besides, getting it reperforming, we can either hold on to it for cash or for good returns or after 6 to 12 months, can resell the note at a reperforming rate, somewhere around at 80%, 85%, 90%, it depends on what the interest rate there is as well. We get money in the front-end, lump sum money along as we go, and money in the back-end if we decide to sell the note off there so it’s a beautiful thing.

If it’s a vacant property, we’re probably going to see a half when we’ve got to foreclose or go deed in lieu, Cash for Keys and try to take the property back, and then we’ve got to rehab the property. I don’t like doing that. One of the biggest mistakes I made early on the note business back in my career is I came from the fix and flip side. I was flipping properties here in Austin, Texas as a landlord and I approached it from a traditional real estate investor. When I bought notes, I was like, “I’m going to foreclose on everything. Screw the borrower. They’ve had their opportunity.” Now I’m sitting there with notes and I’m not getting any money in. I’m having to fork out attorney fees and repair costs.

It stretched out my cashflow and I had a lower return investment. I look back and recalculate the offers that if I would have modified the loan, I would have made a lot higher return and a lot less stressful because I could have converted those loans into reperforming loans in 30 to 90 days. Vacant properties often need work, some major rehab or something, or often it can become ugly in the side out there for you. It often takes longer to foreclose if it’s a vacant asset. In some states, they’ll expedite the vacant foreclosure. New Jersey is a state that if it’s a vacant property, they’ll speed up the foreclosure process to about 6 months versus 1 year to 2 years that it takes.

For the most part, you’ve got to track down the borrower and serve them to go there. I would rather deal with a borrower and give them a rock and roll or pay them, incentivize them in some way to work with me to walk away. A lot of people like ugly houses and you’ll find a variety of little ugly houses across the country on the banks out there. Here’s an interesting case study a lot of people like. There’s a duplex in Phoenix that was part of a portfolio that we got from Wells Fargo back a few years ago. This is an interesting story. It was an investment property and we knew that going into it.

The borrower owed $130,000 on the first lien. There was no second lien. He hadn’t made a payment in eighteen months. The house is a little duplex, a little front house and a back house. If he put $30,000 repairs into it, it would be worth $110,000. It was worth about $55,000 as it set current market value. I always like to ask people, and this is the interactive part of the thing, what would you pay for this? If it was worth $55,000 as it set and you need $30,000 in repairs, what would you pay for it? There are $20,000 and $30,000.

A lot of people are like, “If you look at the traditional ARV, it’s worth $55,000. I’ll offer $30,000 at 60% ARV.” Tracy says $20,000, Dave says $20,000, EM Robert says $25,000. Brian says $15,000. Sorry, Brian. EM already says $25,000. You’re the lowest, Brian. Your bid is kicked out. You’re blacklisted for being a lowball investor. I’m joking about it. I wish I had 4 or 5 of these. I would have sold one to all of you because we didn’t pay $25,000, $30,000, $20,000, or $15,000. I paid $3,750 for this note. It’s a funny story. When I called the bank, I offered $1,000 because they didn’t pay me for eighteen months.

He countered at $5,000. We countered in the middle at $3,750, and that turned into roughly $17,000 in profit. What happened is the borrower was living about 2 miles down the road. I sent my realtor, Bobby Wilson, and she went by and drove by and found out that there were two bums living in the property. It was occupied illegally by a couple of squatters and these bums were doing a great job. On one side of the house, they had dug a trench and buried a garden hose that was stealing water from the next-door neighbor, and then they were stealing power from the other next-door neighbor.

I was cracking up about that a little bit, but we were able to get him out of the property and move on. We bought the note for $3,750. I called the borrower up and sent him some letters. He wouldn’t respond to letters. I’m like, “Get on the phone. Give him a phone call.” He answered the phone and I said, “Hello, Mr. Retana. How are you doing tonight? My name is Scott Carson. I’m with the new lender on your property on Holly Street.” He’s like, “Crap.” We often get that response when we’re talking to borrowers.

I was like, “It’s okay. Let’s talk about this. I’m your bank. What do you want to do?” He goes, “Holly Street?” I’m like, “Yes.” I go, “Habla Inglés?” He goes, “Yeah. I speak okay English.” I said, “You probably speak English better than my Español.” He goes, “Probably.” I said, “Let’s talk about it. I want to work with you in some fashion.” His wife heard and said something. He’s like, “No habla Inglés,” and hung up on me. My realtor goes by and knocks on his house the next day. She’s able to have a conversation with him and tells him what we want to do. We wanted to walk from the property. He agrees to it. He showed up at the title and spoke fluent English at the title company when he signed over the property to us. We paid $3,750 for this.

When Bobby found out when I paid for the note, she dropped her jaw and said, “Scott, I’ve got $5,000 in my retirement account. Can I fund the deal and split the profits?” I’m like, “Yeah, let’s do it.” I can sit in San Antonio, where I was at the time, do a deal all the way across the country, not to show up to collect rent, not have to use a hammer, and have somebody else do the work for me. I can still make $8,000 on the deal. We did it. We listed it not only on the MLS, and then she listed it on Craigslist and sold it for $25,000 to a cash buyer. That was her and her husband laughing all the way to the bank on it.

I never walked the property, never swung a hammer, never collected rent, or shut the clubs. That’s one of the big things I love about the note business. 95% of the assets I have bought, I have never walked the property myself. There’s always been somebody else there to do it. I’m in Austin, Texas. I’m 2.5 hours away from 90% of the United States that I want to jump on Southwest Airlines. I rarely do that because I’m usually buying 5, 10, sometimes up to 60, sometimes up to 100 assets. It would take forever. I rather use realtors and other local investors and meetup groups to do the due diligence for me and they’ll go out and take a look at it.

It took me about, start to finish, three hours of combined work and I closed on this deal from over 1,000 miles away. I wish they were all that easy. EM says sign me up. If I had four of these, I’d sell these all to you out here. The beautiful thing is there are vendors in place to help you out there. There are vendors to collect on the payments. There are vendors that reach out and make phone calls for you if you’re going to be in a deck game, you’re the general manager of a hockey team. I’m going to use a Canadian reference here.

If you’re in charge of the Edmonton Oilers, you’re not going to be the one going down there and selling beer or sweeping after the game. You’re going to be up there making decisions. “We’re going to draft this one. We’re going to hire this guy to do it. We’re going to make sure that the asset.” You’re a general manager of your business here. That’s the beautiful thing I love about this business. I don’t have to be in front of my house. I don’t just show up for rehabs. Nobody calls the bank when Little Timmy flushes the rubber duckie down the toilet and water is coming out. They don’t call the bank. They call the landlord or they go, “Crap,” and run the other way.

All sorts of deals, we’ll find out there. The deals final. This is a condo in Fort Lauderdale, Florida. It was near the water. The value was $100,000 fair market value when we came across this deal. The guy owed $160,000 on it and paid in a while. It has a 2-bedroom, 2-bath, and 1,050 square foot. Fort Lauderdale is a nice area there. The rent is for $1,200 a month and there was about a $250 a month HOA as part of it. The guy owed $160,000 on this. It has 24 months in default and it would take roughly if you bought the note twelve months to foreclose.

I will ask you, what would you pay for this note if it’s worth $100,000? Here’s a little thing. It’s clean. We talked to the HOA, the condo association, it’s clean. It didn’t need any work. $25,000 for Dave. Sharon says, “I need one of these deals. Even going from Canada, the American dollar is a deal.” $11,000? Come on. It’s worth $100,000. I’m not going to sell it to you for $11,000. I’ll keep it from that. $15,000? Come on. $25,000 and $35,000, you’re getting better at pricing there. Otherwise, I’m not going to look at your offer. $25,000, you countered EM. Neil says $40,000. That makes sense. Good stuff there.

The beauty of this stuff was the HOA interferes as well. $10,000, no, Harry. Sorry. I’m loving the interaction here. What I love in Florida is we call it God’s waiting room. There’s a special thing called safe harbor. The guy was $15,000 in HOA fees. I don’t remember exactly what it was. When you buy the note and then foreclose, the beautiful thing is it wipes out the HOA. You’ve only got to pay the lesser of 1% of the original sales price or one year of HOA fees in Florida. It’s called safe harbor. Sharon says $50,000. HOA is a homeowner’s association to make sure all the borrowers and all the property owners are living by the regulations and make sure they’re not doing all sorts of crazy stuff.

I didn’t pay $500 for it, Kevin. I paid a little bit more for it but that’s okay. I paid $33,000 for this note. It’s still a great phenomenal deal that I would have had to foreclose, but I flipped it for $60,000 to another investor who did all the work. I said, “I’ll take my $27,000 in profit and let them deal with it.” Tony, he’s an ex-American Airlines pilot who lives down in Florida now. He used to live in Canada. He reached out to the borrower and was able to get a consent judgment from them. He finished the foreclosure process a lot faster than twelve months. He did it in 90 days and then sold the property for $90,000 so it was a win-win across the board for both of us.

He was living down in the area. He wanted to deal with it, great. The borrower lived out of state but he was able to negotiate with it so it’s truly a win-win across the board for all parties involved there. “It’s like condo fees here in Canada.” It’s exactly what an HOA is or COA is. You can make me hold a note, Jamie and Laney Harrington are some good friends of mine out of Taylorsville, North Carolina, which is north of Charlotte. They’re great people. She’s been a mortgage broker and CPA for twenty years or so. He’s a fix and flipper. They bought this note. It was on a portfolio from a hedge fund that had about 75 assets in one note in North Carolina, which was down the road for him.

The number of times is not the biggest asset, and I saw this as well. She’s like, “This is in the hood. It’s in a bad part of town.” I’m like, “Do you want to make an offer?” “You should ask my brother out. He’s not scared of the hood.” I’m like, “Okay.” He goes out so it’s not a bad looking property. She made an offer on the note. You have a lot of hedge funds or a lot of banks that have stuff that has been on their books for a while. The UPB, that stands for Unpaid Principal Balance. Leans they owed $37,500 plus back payments. When we looked at it and pulled our own comps, we saw it was worth about $50,000. The bank valued it roughly at $30,000.

You’ve got to realize these banks are looking at thousands of deals. They don’t know the true details of every asset, what’s going on in the neighborhood, condos, and the property a lot of time because they’re spreadsheets. I told her, “Make a cheap offer. Make it $5,000.” She’s like, “I like this condo. I’m going to make an offer of $17,500.” I was like, “No. Make an offer for $5,000.” She made an offer for $17,500 and the bank accepted it. When I called the banker and said, “What would you accept? I probably would have accepted $7,000.” I was like, “Crap” but in some cases, people think, “She overpaid by $10,000.” Not really. Even though the place is worth $50,000 to $51,000, she still picked it up at $0.50 of what was owed so it’s a win.

 

She went out and knocked on the door, which I told her she shouldn’t have but she did it anyway, and the borrower answered the door. He was a big guy, a long-haul truck driver, and had been laid off for quite a while but he got hired back on for a new company there in Charlotte. He’s like, “I would love to stay in the house.” He opened the door and you can see that he’d done all this nice work. It was in great condition anywhere. “I’d love to stay. I got hired back. Can I give you $5,000? Can I give you my son as a bonus to keep me in the house here?” What do you think she said? She said yes. Why not?

She accepted the $5,000 and got him to start paying again. It turned out based on the payments, it was about a 22% cash and cash return on the payment stream alone. The big kicker here is seven months later, he shows up at her office and is moving out of state and wants to sign the property. He’s like, “I know I can sell it but I don’t have time. Can I give you the property and let me walk?” She’s like, “Okay, sure.” It’s a good return on investment therefore because you have people that want to walk. You still have people though that you got to foreclose and you got to get the attorneys. You don’t want a charity. You donate to charities or you have your own charity, but you’re not a charity.

You have to give people opportunities, and that’s what she did. She said, “If you’re going to miss this payment, you’re not going to get the $5,000 back. You missed the payments or don’t stick to the loan mod. I still have the right to foreclose and take the property back.” It worked out in a win-win there. Sometimes, you’ll get a deed in lieu. This is an asset where the borrower signed the property over and walked away from us in 30 days. In San Antonio, a borrower owed $130,000 on this deal and made payments for twelve months. He’d been laid off for work and tore his ACL. We bought the note for $53,000 from a bank out of Dallas.

I drove by and there’s my realtor Haley Catlett sitting out there in front looking at that property. She’s like, “It was a nice little property.” It’s worth $110,000 roughly at that point, $2,500 worth of fresh coat of paint, and had to replace the carpet in one of the bedrooms because the guy’s pitbull tore it up. He was out of the house and moved out. We got deed in lieu from the time we bought in 30 days. I raise capital because I had a good deal. I posted it in the meetup groups, Meetup.com in San Antonio about the deal saying, “It’s worth $5,000 worth of work. I’m looking for somebody to split profits on the deal.” We had seven people respond immediately twelve hours to fund the deal.

We sold it 90 days later for $125,000. In Texas, we have a fast foreclosure process. If he wouldn’t have played ball with me, I could have foreclosed. I don’t know why the bank didn’t foreclose, except for the fact that they were overwhelmed with a variety of things. A lot of people are asking, “Scott, why wouldn’t a bank foreclose versus selling to you at a discount?” Because they’re not in the property space. They’re overwhelmed for a variety of reasons. If I could give this bank $53,000 now versus having to drag it out for God knows how long, they would rather get that money and leverage it out, and then it’s a win-win across the board.

$60,000 in profit is not a bad day, even taking 120 days on the deal there for you. This is a property in Florida. We bought the note and we thought we’d have to foreclose. We opened up the loan file sent to us and there was a sign, deed in lieu, sitting on top. The bank didn’t even know that the borrower is on the property back to him. This is a property in Cincinnati, Ohio. I bought it for $15,000. The borrower was elderly. She was moving into a retirement home and she didn’t want to leave the property to her kids. She’s like, “Those rats. I don’t want them to get anything.” She signed the property over to us and we sold it for $48,000 in roughly 45 days later and a little bit of work.

This is a property in Alabama. The borrower paid it in full. Haven’t paid in twelve months and we sent out letters and door knockers. We start the foreclosure process and we get a payoff request. We tripled our money on this deal. It took about nine months but still, it’s a good ROI on that stuff for you. This is an eight-unit apartment complex in San Diego that I talked about. The borrower owed $549,000 on it. The bank’s appraisal that we got from Capital One’s at $700,000 value. They accepted $375,000. I didn’t have the $375,000 when I started off doing this so I sent an email out to my clients on my database. An investor came back and said, “Give me $15,000 for it.”

I made a $35,000 profit in 24 hours on this small little eight-unit apartment complex. He ended up making $148,000 on the deal about nine months later by getting the borrower to walk away and then selling it as an REO. Thank you, Neil. I’m glad you brought that up. Is there ever a bad outcome? Yeah, there are bad outcomes if you don’t do your due diligence right. You always want to check title, tax foreclosure because a tax foreclosure can wipe you out. I’ve seen people that didn’t pay attention and they didn’t check titles. They bought a property and they’ve been wiped out.

I was looking on a website that had this residential assisted living in Paradise, California. I was like, “$75,000 for a two-bedroom in California is ridiculous,” and then I realized, “It probably burnt down.” The pictures they showed were looking all pretty so that’s a mistake. If you don’t send something out or an actual realtor to pull comps or to drive by the property, you could buy an empty lot. We’ve seen that happen before. If it’s trashed outhouse and you don’t know what it is, you’re trusting Zillow values, that’s a big thing.

If you don’t get aggressive in your borrower or outreach with a servicing company, that can also be a bad thing. You’ve got a lot of things you got to look at differently than the value of the property. You got to understand what’s going on with the borrower. It’s a different mindset than your fix and flip side of things so you’ve got to know what’s going on. There are three condos in San Diego right on the beach. We originally approached the developer on this one because they were hanging on his portfolio. The bank wanted off its books so the bank started to foreclose on him.

We reached out to the bank, bought the note from them cheaper, went back to the borrower, the developer, and let them walk from the loan. We held on to it for about six months and then sold it and made over $1 million on this deal here. It took a little bit longer. When you’re raising $3.5 million in capital, it takes a little bit of time to do that but we did it. You got to know what you’re doing. You got to put the vendors in place. If you try to do it all, you’re going to scrooge it up. That’s why you’ve got to know what are you looking at? How do you perform due diligence on these things? How do you look at borrower stuff?

Sometimes, the banks will call you on deals and you’ve got to make sure that the price makes sense. I’ve got a question here. “Can Canadians invest these notes remotely?” Yes, you can. REO stands for Real Estate Owned. That’s when a bank takes a property back and it’s real estate that they own. We deal with it. We’ve got quite a few of our clients and our students are Canadian investors and investors in the United States, either through an LLC or Delaware Corp. You’d want to talk to your attorney to figure out how to set that up properly.

What you have to realize too is the bank. If you’ve closed a deal with a bank, oftentimes they’ll have deals that they’re looking to get rid of. If you close a deal and perform with them, you’ll find a new best friend out there. There’s a deal in West Palm Beach, Florida. It’s a 6 or 8-unit apartment complex. When we first got it, it was worth about $240,000. It’s not in a great part of West Palm Beach. The borrower owed over $490,000 between the 1st and a 2nd loan. When the bank reached out to us originally, they said $300,000. We said, “No. It’s way overpriced.”

A month later, we fall back up. “Do you still have that note?” “Yeah. We want $244,000.” We’re like, “No, it’s way overpriced.” About 90 days later, we finally settled on the $175,000 and it was half occupied. The beautiful thing is that the bank had overtaken receivership where they were controlling the asset. When they sold the note to us, it was eight months until the foreclosure auction. In that eight-month period of time frame, we were able to get new tenants in place, new leases in place, and get it back into performing.

When we took it over receivership and when we took it to the foreclosure auction, eight months later, we sold it for $310,000. The banker calls me about once every quarter, once every six months with something that falls out. We still touch base on a regular basis. He’s on my Christmas card list when I do send Christmas cards. That’s the thing. There are many institutions out there that don’t know where to turn. Banks are in the performing note outside. They’re not set up to do the nonperforming side. As long as you know what you’re looking at, pulling values, and pulling title, you’ve got to do your due diligence like anything else, everybody out there.

Win-Wins

The opportunities do exist in some great things. The Law of Average is if you buy 10 notes, probably 3 to 4 you’ll modify and 3 to 4 you’ll get the borrower to sign the property over and get back to you. You have to foreclose the other 4 to 6. Americans are guilty of hiding our heads in the sand and a lot of times, we need somebody to come up and stiff us with a big swift kick in the ass. You have to realize if you’re a note investor, your deal is not to take the property back. When you buy that note, it’s to modify or reinstate the deed in lieu and let the borrower walk or if they won’t deal with it, you foreclose and then sell it as an REO.

I don’t like owning property. If I got to take a property back in foreclosure, I want to sell it because then I want to capture that equity and that money now, and then I go back and double down by 2 or 3 assets. We create win-wins for the property on a variety of fashions. One, offer them a deed in lieu and allow them to walk. We don’t come after them for judgment. If they’re going to work with us, great. We’ll be their best friend. We’re not reporting new late pays in their credit reports. We’re not reporting foreclosure on their credit. We’re not doing cash. We’ll do Cash for Keys as a little mock sometimes to get some cash in their pocket, get some equity, or help them move on their way.

We’re not coming after some of that promissory notes, which is what happened beforehand, and the bank still tries to do this a little bit when they take a loss. America has got its head in the sand. 4.1 million Americans in default and another 4 million that should have called the banks that haven’t called the banks. That’s on the residential side. The commercial side is even worse. We create a win-win for the banks because they get rid of the bad debt that’s killing their books. Banks are evaluated on their loans, the performing, and nonperforming. Every dollar in nonperforming costs roughly 8 to 15 times that in their ability to leverage that.

The fact that we can come in and buy a note, close on it now, settle in a fraction of time, get the cash, and move on to something else for the next 6 to 12 months, great. Banks do not like real estate loans. They don’t like owning property because it’s a nonperforming asset for them. Banks have had this pretend and extend mentality on commercial notes for years. We’re going to see some of that. We’re like, “You haven’t paid us in six months. We’re going to give you another year. We’re going to extend it.” No. That’s part of what gets them in trouble out there.

One of the biggest things is bankers. They’ve been gobbling stuff and financing stuff as the market keeps going up. The market had to change at some point but that didn’t stop them from funding all this stuff. The biggest problem with banks and asset managers is if they’ve got an obvious problem, they got their head shop somewhere else and they’re not paying attention to what’s going on in the market, which means huge opportunities for you. As a Canadian, how can we get the bank to reinstate or modify the loan? I’m not sure what you mean. When you buy the note, you become the bank. Your entity becomes the bank.

We have a question. Do you ever keep properties and refi them and hold them? Rarely, only if it’s in Texas or Florida because I go to those two states a lot. It makes more sense for me to take all the profit, and then double down by 2, 3, or 4 assets at a time, not going to 4 properties or 4 notes versus 1 or 2. When you run it through the calculations, it doesn’t make sense to hold on to most of the stuff, therefore, especially if you’re buying it at a big enough discount like we are. How do we create a win-win for us as the investors out there? I don’t know about you but when I was a new real estate investor, I felt like I was on this hamster wheel running in place. Mailing out postcards, mailing out yellow letters, door knocking, and trying to do things to get people to respond to me.

Big Tank, Few Fish

If they did, it would be one deal and I had to do the whole thing all over again, month after month. A lot of people don’t have that extra budget. Here’s the beautiful thing, the banks feed us deals when you’ve got connected with them. They’ll send you lists on a regular basis. There’s not that much competition. The note investing space is a small niche compared to your fix and flip, landlords, and everything else out there. There’s truly about 10,000 to 20,000 true nonperforming note investors like me out there, but I’ll tell you this. There are a lot of people that like those options, even the banks and institutions are getting excited about that, and that’s great.

 

They’ll buy a lot of that bigger stuff. There’s plenty of that smaller stuff that can trickle down to investors like you to me. We have a question. Do you have to pay taxes on the property when you hold the note? If you get the borrower to reinstate, they’re responsible for the taxes. We have a property in Ohio that we’re getting ready to foreclose on, borrower owed, and paid in three years. I went ahead and paid the $2,000 in back taxes to avoid tax foreclosure wiping me out. I still bought it cheap enough to do that but that’s one thing you do in your due diligence. Look at the taxes owed to get it modified and always try to get the borrower to pay their taxes and their insurance. If they don’t pay that, then you have the right to foreclose and take the property back.

There’s little competition in that space compared to other things. We find some awesome deals. We don’t do skinny deals. That’s the one big thing. If you get a listing from the bank and it’s all crap that you don’t want to take it down, don’t. Move on to the next one. I get people, “I want to do a deal, especially as the market gets more competitive.” He’s like, “I’m going to do a skinny deal.” I’m like, “No, wait. There are plenty of deals out there.” As Canadians, we have to deal with exchange rates. Is it still worth it? I got plenty of other investors from Canada that are doing this, so yes. Can you write off those back taxes? If it’s an expense, yes. Like anything else.

I’m not a CPA or an accountant, so you want to check it with your CPA or accountant. If it’s expense or cost in your real estate stuff, yes, you can write that off. It’s a little overhead. You don’t have to have a big office. I’ve negotiated deals from here in my loft because we’ve been stuck down in COVID. I’ve negotiated loan mods while I was traveling on a cruise ship. I’ve looked at properties all across the country from the comfort of my own home or office. You don’t have to have a big overhead. That’s the beautiful thing that I love about this, too. You can close residential commercial deals.

If you can jump on the internet, you’ve got a cell phone, jump on LinkedIn, and reach out to asset managers, that’s some of the easiest ways to find deals. Do you need a US corporation to purchase this? Do you need a US entity of some sort? Yes. I’m not an accountant or an attorney but as I talked to my asset protection guy, he says it’s best to get you like a Delaware Corp or an LLC. A lot of times, in Nevada LLC. I’m not sure how the taxing goes on that works for you so you still want to double-check that. We do have plenty of Canadian investors that call Canada home that is buying debt here in the United States.

We’re not paying $0.90 or $0.80 or $0.70 of the dollar. We’re usually buying well below that to make some deals happen. You walk across the United States, there’s a variety of things at this and you can do this with none of your own money because there’s plenty of people out there. If you’re going to pick up an asset at $0.50 of value, there’s plenty of investors that would fund that deal. Even if it takes you a year to foreclose, there’s still plenty of great deals out there for you. I always find that a lot of real estate investors, when they get into the real estate space, they go property crazy. They’re happy as a puppy. “I’m a real estate investor. I went to my workshop this weekend. I learned how to do this stuff.”

If you talk to them in 6 months or 1 year later, they’re wanting to kill themselves because they’re burnt out on marketing and trying to do all these strategies. I became the note guy because I got good at one strategy. If you’re going to do anything in real estate, focus on one thing and understand that doesn’t try to do 20 to 30 different strategies. That will burn people out left and right. I stopped to focus on fix and flips, wholesale, and other things and focus on the note space. I primed it well and timed it well years ago. That’s all I focused on. It’s not saying that I don’t end up selling some property. It doesn’t mean I don’t end up with some properties. I got to run out as an exit strategy.

I’m focused on one strategy so I’ve streamlined my systems and I show people how to streamline systems as well. The point is that our note investors spend a lot of time and often feel a little crazy out there but if you need to find distressed assets, we’ll show you how to find those assets that are upside down in value. If you need a realtor and people to reach out to you, we’ll show you how to do that. If you’re looking for people to look at your collateral files or to tell you exactly that the pen is mightier than the hammer.

We’ve got vendors who are happy to look at exactly what you’re doing. Servicing companies, people do the borrower outreach to make the phone calls to say the right things to help negotiate with borrowers. People will do that for you. If you need attorneys to foreclose, we can show you the right people to do that. If you’re looking for private money IRA accounts and IRA companies out there, we can put you in touch with the right people out there. If you need insurance, there are companies out there to do it all. This is a business that you’re directing your vendors to make things happen. The point is, “Why didn’t I do this sooner?”

A lot of people that we get are landlords and fix and flippers. They’re tired over pain or tired of dealing with tenants, toilets, and trash outs, and they deal passively whether they’re not getting a check in their mailbox or getting a wire by the fifth of every month. I started teaching people how to do this years ago. I started off with small people and we’ve helped hundreds and thousands of borrowers and investors all across the country to dive into what they’re doing out here. I’m doing it as the note guy because I focus on buying stuff. I walk the walk. we’ve bought a lot of stuff and most of it’s been good. There’s a lot of singles and doubles, some grand slams, and then there are others that struck out.

Don’t ever buy a note in Chicago. Chicago takes forever to foreclose. It’s a corrupt city. Somebody asked about bad deals. I hate Chicago. Trust my advice. Don’t buy Chicago or New Jersey. It takes forever to close. You’re not going to buy in Kentucky, they want a $1 million bond there and it takes forever to foreclose. There’s a lot of other states out there with good deals whether it’s Hawaii or in Florida. We’ve helped a lot of people and the proof is in the pudding. I could go on and on showing you case studies after case studies but one of the biggest things in our masterminds was I was excited that our students had closed over 2,000 deals individually. Not my numbers. That’s them in that group alone there.

We could go on and on but what’s the catch? Investors don’t know what they don’t know. We all struggle with three things. We all need somebody to pick up the phone and give us a phone call or reach out to an email and work through a deal. I found investors struggle with three primary things. One, finding deals. Two, marketing, what I say how to raise capital. The third thing is raising capital. We’ve put together a good game plan in helping a lot of people close a lot of deals out there with goals, actions monitoring, and evaluation to help them take their businesses to the next level.

What we have put together is a CliffsNotes version of learning the note business. We call it Note Weekend. It’s a one-day class. That’s yours truly teaching from 9:00 to 5:00 on the note business. We have an upcoming training and we teach it once a month. Usually the 3rd or 4th Saturday each month. It’s a one-day training, basic mini-workshop. You’re not going to learn everything about the note business in one day and little in the three days but this is a good thing people tell me. It’s a CliffsNotes. You get a twenty-page manual that has an additional ten hours of video links with our vendors and other training involved with it.

We do a live stream via Zoom where you can ask questions throughout the day. If you can’t make it all day, the replays are included so you can watch the replays the next day. I get the replays out fast and you can download the replays. The replays don’t expire after 24 hours. They’re not like that. Normally, it’s $99 from 9:00 AM to 5:00 PM. If you go to Note Weekend, you can see the full itinerary and get signed up there. We cover a lot. In the first part of the day, we’ll spend on where to find the deals. I’ll give you a list of 1,500 plus banking institutions in the United States across the country.

There are five branches or more and it will show you how much they have in distressed debt, commercial debt, 90-day defaults, and 30 to 89. How many of them have multifamily? That’s something we’re looking at. It tells you exactly what star rating whether it’s a 0 star up to 5-star. That’s included. We’ll talk about how to fund these deals with OPM, whether it’s local investors or Canadian investors. We’ll talk about the different ways to raise capital. I love what Dave does. Dave does a great job of teaching people how to raise private capital on things. We see a lot of things, but we will show some tricks that we do.

We’ll talk more in-depth about the different exit strategies, how you get the borrower to move in one strategy, and how you make money depending on what the borrower comes back and wants to do. We’ll talk about the vendors and the teams. It’s inexpensive. Part of the deal is having these vendors that work with you to identify. I have a conference call with my servicing company about once every two weeks. We look at a spreadsheet and they tell me where they’re at. They email me on a weekly basis or sometimes daily basis when the borrower has reached back out. If it’s performing, I get to wire the 5th and the 15th of everybody that’s paid.

We’ll also share some loan training platforms for you that you can start looking at commercial and residential deals immediately that are available for sale. Unfortunately, there’s not a loan MLS out there but there are some major platforms out there. You can start looking at stuff now. Are there distressed properties in Canada? Yes, there are but your banking system is completely different from what they have here in the United States so I can’t talk about that. Besides, that is a different aspect of it. You mentioned you don’t cover everything in the Note Weekend, what else do we need to know and how do you help with that? I spent a lot more in-depth.

I have a three-day workshop that I teach once a quarter. I cover these things, a lot of trading platforms. We’ll spend time talking about other things marketing, a little on the legal side of things. We cover a lot in a one-day thing as a touchpoint so I could go on with testimonials after testimonials from people all across the country that love what we do, how we teach, and how they’ve taken it. I like showing individual deals. Chris and Katie Matan, they closed on this deal. They closed on about a dozen since they closed on that one. Michael Weckl in his first month bought this deal in Missouri.

Haytham lives in Houston and Riaz lives in San Francisco. They partnered up and they’ve closed down over 50 deals in their first twelve months. They’re still working part-time. JD and Harvey closed on 4 or 5. They own a trash can business in the United States. Duet has twenty closed deals in his first six months. He’s at the 80 deals dive on a lot in Indianapolis. Peggy Sue’s a realtor out of Delaware. She’s closed on 4 or 5. Wayne Stiles is a student of ours. He started off slow a little bit. He was making six figures working about 80 hours a week. Over a period of two years, we got him to transition away from that. He’s closed on over 300 deals and replaced his six-figure income on an annual basis.

Bill Greismer has closed on 30 to 40 performing notes because he likes performing notes. Cody Cox is out of Portland, Oregon. He first closed on twelve deals. He’s up to about 50 deals now if I remember correctly. He started a fund out of Portland. Howard Markel is from the Dominican Republic moved to Tampa and he’s closing on deals all across Tampa and a variety of things. We’ve got Dan Dip, who’s a rocket scientist and his wife Jennifer is a true rocket scientist there. He’s a smart guy. They put a plan together and were able to leave his job in twelve months and replace income with the cashflow coming from his note business of performing and nonperforming side.

One of the things that we pride ourselves on is working with people to come up with a game plan for what they want to accomplish and being able to reverse engineer those numbers back into you. I got a ton of bonuses. We throw in over $1,000 bonuses. The class itself, we’re going to drop it down from $99 to $49 for you because I want you to take advantage and learn and get rock and rolling on stuff. I have a goal to help educate and create 1,000 note investors. I want to take away any need as to why you would not be able to do this. On our one-day note, we can train. That’s normally $99. We throw that in.

We have a one-day training as well where I call banks for four hours. You hear me make phone calls, the conversations, you see who I call, and you can ask questions back and forth. That’s usually $49. We throw that in. We’re going to do that the Wednesday after the class so you can watch it. If you can’t make it, that’s recorded as well so you get the replays of that, too. I’m going to give you the BauerFinancial list. I talked about the 1,500 banks, the list that we pull on a quarterly basis. We’re going to give that most recent list to you so you can take a look at that and start having your hotlist. That’s usually $400 to buy by itself.

We do a 30-minute coaching call with you after the class. I usually charge $1,000 an hour for consulting. We’re going to throw that in and help you in the right direction of whether assets or what states to buy or which way you want to go next. We include replays. If you’ve got your spouse or business partner, they can attend as well at no additional cost. We also have a private Facebook group with over 900 of our students as a part of it that asks questions. It’s a great networking thing. Not only in the United States but all across. The private Facebook group is $100. There are ten hours of additional videos. It’s probably worth $100 at least, if not more than $40.

 

All that’s in there is $1,200 plus in bonuses. The class and all this stuff are $49. We’re not trying to get rich on this. I want to help develop people so that when you’re reaching out to banks and you’re calling and getting list them to you and when you’ve got stuff that you’re not buying, hopefully, you give me a phone call. I can look at those deals or I can help you find people fund those deals or buy those deals from you as well. There’s never been a better opportunity than what’s going on. I’m excited about what we see in the market going on. We’d love for you to be a part of that. NoteWeekend.com, if you sign up for the class and you’re like, “I don’t think this is for me,” let me know. We’ll refund your money back on that day, Saturday. We’ll gladly refund the money back, no questions asked for you. It’s one of the things we stand by.

I deliver content. I’m not going to sit here and blow smoke. It is not a pitch fest. The twenty-page manuals outline, you can see that in what we’re going to discuss at NoteWeekend.com on the schedule on the website. I’d love for you to be a part of that. I could go through all the difference in the deals we’ve closed back and forth here for you but I’d love for you to open it up for questions and have you sign up. We have a question, “Can I sign up for the course this weekend but attend next month?” Yes, you can. You can sign up and we’ll send you a link for next month as well. Can I register for the September training? Yes, you can. It’s a good price. It’s $49. I got to have a little bit of investment in your part. Otherwise, you’re not going to show up.

We’ll run roughly from 9:00 AM Central Time. It’s a little early for you but we’ll run until 4:00 or 5:00 and sometimes 6:00 or 7:00. Usually, in the last 45 minutes, we’ll do it for online networking. We’ll let you come on and talk about where you’re at and what you’re looking at. People like to do that because that’s an opportunity to connect with other people out there. We have a question. I’d like to know more about your quarterly training. Great question. One of the things that we do share is we have a three-day workshop called our Note Buying For Dummies. It’s a little bit pricier and it’s a lot more in-depth. It’s three days, a full day on finding deals with scripts, calling banks, and a whole lot more stuff with that.

On the second day, we’d spend a whole day on raising capital and marketing. The third day is all on the different exit strategies, so it’s a lot more in-depth in nature. One of the things I do is if you end up signing for Note Weekend, I apply the $49 that you spend on that towards that classes. The recording is included as well and stuff like that for you. In the Note Buying For Dummies, you can see what that class entails as well for you there, but I like to start off with a dip your toe in the water and see if it makes sense. Can you pay via PayPal? No. However, you can pay with a credit card. We can take Stripe though, but not PayPal.

We have a question, “How much time do you need to spend on this business?” If you’ve got ten hours a week because we understand you’re working, a lot of people start off doing a little bit at a time. We got students that started to work full-time jobs, not working 40 to 50 hours a week in this stuff. They’re working 5, 10, 15 hours as they get things. Sometimes, you get a peek as you get leased and you’re working through due diligence. Other times, you may not see much stuff out there. I want to bet the next couple of years, we’re going to see a lot of stuff. I’ve seen a lot of commercial deals hitting the market. We’re going to see a lot more residential notes here not only now, but as we get into the fourth quarter as the banks, you’ve had six months to evaluate their borrowers.

They’re going to get a lot of stuff off their books that the people that are in forbearance agreements that haven’t been paying to get to somebody else, especially for the year-end. I’m salivating at crazy between now and the end of the year. It was a prime time especially setting into other things. That’s why we’re doing the class on a monthly basis. That’s why we’re calling the banks, so you get some impact. You’re off rock and rolling for you. How much do you need to spend on this business? There’s a lot of people that don’t spend much. You don’t need a lot of overhead. You’re going to have some costs for marketing like an email service provider like MailChimp. There’s going to be some due diligence costs for BPOs, broker price opinions, or a title report. You need to do that.

If you buy an asset and you need to have the lawn mown and faking a nuisance, if there’s going to be some of that work, it should be on an asset by asset basis. The things that we teach is you buy the asset at a price where you can have your funding partner fund the foreclosure costs and a lot of the miscellaneous stuff. Little budget, say $3,500 for foreclosure costs. If we only have to have that happen 50% of the time on the one note that it didn’t, we didn’t have to foreclose on. Now we’ve got $3,000 we can use towards costs and towards other things and expenses along the way. What’s your number for a skinny deal? Minimum profit. I don’t want to do anything below 25% ROI, Chris. $5,000 to $10,000, I’ll do that for a wholesale deal. I’m looking at cashflow here for the most part. I want my cashflow because what I want to build is wealth on performing loans for the most part.

When I structure my deals, what I look at when I make my offers is if they reperform, I want to see a 25% cash on cash return over what I’m paying for the asset and taxes if I have to pay taxes. Leah says, is it a full day? It’s from 9:00 to 5:00. There are some breaks. If you go to NoteWeekend.com and scroll down, you can see the rough outline. Sometimes, it runs a little slow, and sometimes, it runs a little fast. If we stay until 6:00 or 7:00, I’m there all day answering questions for you. There’s not another speaker. It’s not some, “I’m going to give you one nugget and then upsell.” That’s not what I do. Don’t do that at all.

What are the skills you need to be successful in sales negotiating? It helps if you understand real estate. Sales negotiation, we can put that stuff together for you. The beautiful thing a lot of times is when you put your formulas in place and what you’re looking to do, your spreadsheet will tell you what to offer. Your spreadsheet will tell you what your maximum allowable offer is and that’s back and forth. A lot of our negotiations are via email back with the bank. If it makes sense, great. If it doesn’t make sense, I move on to the next one. I will tell you this, if you’re way over-analytical as an engineer, engineers sometimes struggle because there are a variety of ways the deals can go.

I’m not bashing engineers. I’m not at all, no offense, but there’s a lot of different little moving parts. You’re going to learn everything about the note business in one day, but you’re going to learn a big chunk of it. Be prepared. Is this in US dollars? Yes. $49 in US dollars. Are we going to learn to analyze the deal? Yes. One of the things that we do is we’ll pull up a spreadsheet and we’ll break down how to slice and dice it, how to evaluate, and how to run some numbers on it. We go through a lot of that. Here’s the thing, too. We’ve got other videos that we’ve included, other webinars, or the trains we’ve done. That’s included with the Note Weekend train for you to watch as well too.

What does the average person need to capitalize it going? Zero. We got a lot of people that have never used any of their own money to fund a deal. They use other people’s money but I’m going to lie to you. You probably need a little bit of money for your marketing as far as not postcards, but your email service. If you’re going to be calling banks, you’re getting charged on your cell phone line and that stuff. Can I get a record? Yeah. If you drop me an email at Scott@WeCloseNotes.com, I’ll send you a link to the replay. I’ll send a replay out to anybody that registered. I’ve got that.

Is there an option where I can invest my money? Yes. We can talk about that, too. We work with people to help them invest their money. How much to budget to sign up for the program initially after the training? Not much. That’s the beautiful thing about this. If you’re buying assets cheap enough in your marketing, you can wholesale the deal and make some great money. If you’re getting reperforming, you’re buying at a price that makes sense so that you can still have your investors fund. I know that sounds different. You’re not going out and doing rehab. You’re going to figure in, “$150 per square foot for paint or carpet or something like that.” It’s a different mindset. Trust me on that.

How is the money moved from Canada to us when paying for deals? Wire transfers. When you’re paying for deals, you’re always going to wire into the bank. I have paid for a couple of assets in my debit card over the phone before. That was an interesting deal but most of the time, the bank wants to see a wire transfer where the money comes in. 9:00 AM Central time, that is when we would start. We’ll be able to do boot camps afterward. I have been to many boot camps that give a lot of information but not what you need. That’s why I schedule a 30-minute phone call with you after to make sure you got what you need.

If you don’t have what you need, you’ve got to realize I got 1,000 plus videos on YouTube. I got over 600-plus episodes. I’ve closed on over $500 million in debt. I can point you in the right direction. This is part of the reason we give you the replays. If you sign up, you get the replays to the last event so you can start learning and watching that if you want to. I didn’t mention that. If you sign up tonight, tomorrow you’ll get an email with a link to last month’s class. Start watching now and then go from there. I believe in underpromising and overdelivering.

Is the Note Weekend October? It’s probably the 3rd or 4th Saturday. It won’t be around Halloween, I’ll tell you that but probably the third Saturday is what we have it down for. “I’m registered in a different workshop.” It’s awesome. I’m glad to have you. Do you teach where to wholesale deals? I do teach how to wholesale notes. I don’t teach wholesaling as a problem but we talk about how to wholesale notes. It’s simple. Thank you, David. It’s awesome. Glad to have you.

Any hand-holding after the note we can train? Yes, Deb. One of the beautiful things is we do regular webinars on Monday night on different topics called Note Night in America on a regular basis. People call me and text me for questions all the time and my staff. There are definitely other people out there. Part of what we have with the Facebook group is 900 other students that you can reach out to and network with as well for you, so it’s just not me. You’ve got a wealth of information from our students and other networks out there, too, all across the country.

We got people in Israel, Spain, London, Australia, New Zealand, Canada, Mexico, Dominican Republic, and all across the country. I’ll send a replay out to everybody that registered for this. Thank you. It sounds good. Watch out for that power source. Your Canadian province is invalid. I don’t know. Drop me an email at Scott@WeCloseNotes.com and we can get you taken care of in some fashion. It’s my direct email address. You’re welcome. Did you learn anything?

Yes. That was fantastic.

Can we ask questions? Yes. It’s completely interactive. It’s like this. You’ll ask questions. In the end, we open it up and let everybody come on video one at a time, talk about who you are and what you’re looking for. It’s easy to get me on the phone if you have questions afterward. If you’ve gone through the day and you’re like, “I don’t think this is for me,” I’m glad to refund your $49 back. I don’t want to keep people around. I don’t want us to part as friends and you go your separate way. It’s completely fine. I don’t need to keep the $49 for you.

You don’t like it? Total refund. No questions asked. Vanessa, thank you and pass it on a day. Thank you for having me on. It’s an honor to be here with you. If you join us late, I’ll email the replay out to you so you’ll have it first thing in the morning if you want to rewatch it. For those that have signed up, we’ll get a link out to you, an email from me so make sure you want to add Scott@WeCloseNotes.com to your safe email. Sometimes, it goes to your junk folder. Look for that.

It shouldn’t be any later than 11:00 AM Central Standard Time, depend along with YouTube fixer for us to process it, but we’ll get it to you by 11:00 AM Central Standard Time. If you don’t see that, please feel free to drop me an email and we’ll make sure to either have to jump on the phone to help you find it or resend it to a different email. My team is here to help support you in any way we can. I’m honored that you would spend this time with me. I’ve had a lot of fun. I love this. I live, eat, and breathe in the note business. It’s such an opportunity.

Another thing that I found is deals are cheap in the note business. You’re taking over the bank’s nightmares, but it’s easy when they give you the nightmares and half off to be able to work that into something that makes sense. If you’ve got a partner, Dave, send me an email. Once you get my email, send me your partner’s information and we’ll send them the Zoom link for them to be able to use to log into that as well. Your spouse or your business partner, drop me an email. I’ll get the link and we like to get them added there for you. I appreciate all of you. Thank you for answering the poll. It’s been fun.

Thank you, Scott. I hope everyone had a great time.

I’m going to wrap it up because this is the third webinar in a row that I did on a different thing. Thank you for having us, Vanessa. I’ll shoot you an email. Same thing for Dave. Hopefully, he has a good day somewhere wherever he’s at. Thank you. Bye.

 

Important Links

• Note Closers Show
• Inc.com
• Dave Dubeau – Past episode
• Quicken Loans
• Meetup.com
• Note Weekend
• Facebook – WCN Crew Facebook group
• Note Buying For Dummies

 

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